|Bid||1.03 x 40700|
|Ask||0.00 x 40700|
|Day's Range||1.04 - 1.11|
|52 Week Range||1.04 - 2.20|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.12 (10.17%)|
|1y Target Est||N/A|
Teekay Tankers Ltd (NYSE:TNK), an energy company based in Bermuda, received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing toRead More...
On a per-share basis, the Hamilton, Bermuda-based company said it had a loss of 7 cents. Losses, adjusted for non-recurring gains, came to 8 cents per share. The results met Wall Street expectations. The ...
Previously in this series, we discussed that crude tanker stocks had a mixed return in week 18—the week ending on May 4. Average VLCC (very large crude carrier) rates rose from the previous week and are above $10,000 after many weeks. Suezmax rates dropped in week 18. In this part of the series, we’ll see how bunker fuel prices fared in week 18.
According to Weber’s weekly report, higher bunker prices and a modest improvement in demand saw small gains in VLCC rates. In the Middle East market, VLCC fixture activity was 22 in week 18 (week ending May 4)—compared to 28 fixtures the previous week. The demand in the Atlantic Americas was stronger and rose to nine fixtures from four the previous week. VLCC fixtures in West Africa remain unchanged from the previous week.
We already looked at what Wall Street analysts expect for DHT Holdings’ revenue and EBITDA (earnings before interest, tax, depreciation, and amortization). Now, we’ll look at what analysts recommend for DHT Holdings and its peers.
As we saw in the previous part of this series, Wall Street analysts expect DHT Holdings’ 1Q18 revenue to fall 31.3% YoY (year-over-year). In this part, we’ll see what analysts expect for DHT Holdings’ EBITDA (earnings before interest, tax, depreciation, and amortization) for 1Q18 and 2018.
As we discussed in Market Realist’s weekly crude tanker series throughout the quarter, VLCC and Suezmax rates were pretty low in 1Q18. Crude tanker companies with high exposure to the spot market will likely see their 1Q18 revenues fall. DHT Holdings has ~73% of its fleet in the spot market. As a result, DHT Holdings’ 1Q18 revenue will likely fall.
Previously in this series, we discussed that most of the crude tanker stocks fell in the week 17—the week ending on April 27. VLCC (very large crude carrier) rates dropped and are still below $10,000. Suezmax rates also rose in week 17. In this part of the series, we’ll see how bunker fuel prices fared in week 17.
According to Weber’s weekly report, VLCC (very large crude carrier) rates lacked a clear direction in week 17 with positive and negative pressure. In the Middle East market, 27 fixtures were reported in week 17—the week ending April 27. The fixtures were 11 less than the previous week.
In this part, we’ll discuss what Euronav (EURN) said about the crude tanker industry in its 1Q18 conference call. The outlook will help us assess the future for Euronav and other crude tanker companies including Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), DHT Holdings (DHT), Frontline (FRO), Navios Maritime Midstream Partners (NAP), and Nordic American Tankers (NAT).
Euronav (EURN) and Gener8 Maritime Partners’ (GNRT) merger should will close towards the end of 2Q18—subject to Gener8 shareholders’ vote. The merger will require approval from most of Gener8 Maritime Partners’ shareholders. If the deal is terminated under certain circumstances, Gener8 Maritime Partners might be required to pay $39 million as a termination fee to Euronav.
Managing finances, especially for highly leveraged companies, is very important. Euronav (EURN), just like other crude oil tanker companies, is highly leveraged.
Euronav’s (EURN) central cash costs include voyage expenses and vessel operating expenses. In 1Q18, Euronav’s vessel operating expenses accounted for ~28% of its total operating expenses. Euronav’s voyage expenses accounted for 15% of its total operating expenses.
Euronav (EURN) recorded revenues of $98.13 million in 1Q18—compared to $117.9 million in 4Q17. Since the crude oil tanker industry is characterized by seasonality, comparing YoY (year-over-year) revenues makes more sense. Compared to revenues of $164.1 million in 1Q17, Euronav’s 1Q18 revenues were 40.2% lower YoY.
Euronav announced its 1Q18 results on April 25. Euronav’s (EURN) revenues and EBITDA (earnings before interest, tax, depreciation, and amortization) fell YoY (year-over-year) in 1Q18.
According to Reuters, the consensus rating for Tsakos Energy Navigation (TNP) is 2, which means a “buy.” The company has had a consensus “buy” rating for more than a year.
Below are the consensus ratings for other crude oil tanker companies on a scale of one (strong buy) to five (strong sell): Nordic American Tankers (NAT): 3.5 or a “hold” Gener8 Maritime (GNRT): 2.2 or a “buy” Teekay Tankers (TNK): 2.7 or a “hold” Euronav (EURN): 2 or a “buy” Analysts’ recommendations
According to Reuters’ consensus, Teekay Tankers’ (TNK) revenue will be ~$91.6 million in 1Q18—compared to $105.2 million in 4Q17 and ~$100.6 million in 1Q17. Along with a fall in revenues, analysts expect a fall in Teekay Tankers’ EBITDA (earnings before interest, tax, depreciation, and amortization).
Crude tanker rates went through a tough period in 2017. In 3Q17, crude tanker rates hit extremely low levels and were below the break-even point. The rate decline continued into 1Q18. Tanker rates have remained weak since the beginning of 2018. VLCC (very large crude carriers) and Suezmax rates dropped below $10,000 per day in 1Q18.
Previously in this series, we discussed that most of the crude tanker stocks rose in the week 16—the week ending April 20. VLCC (very large crude carrier) rates rose but are still below $10,000. Suezmax rates also rose in week 16. In this part of the series, we’ll see how bunker fuel prices fared in week 16.